When the price of good A rises and this causes an increase in the demand for good B, how is good B classified?

Multiple choice question for Introduction To Economics. Select an option, then review the explanation below.

Explanation

If an increase in the price of one product (good A) leads to a higher demand for another product (good B), it indicates that these goods can replace each other. Therefore, good B is considered a substitute good. Complementary goods, on the other hand, see demand decrease when the price of the related good rises.

Practice related questions from the same subject.

1.Which of the following factors directly influences the supply curve?
2.Under what condition is a market considered to be in equilibrium?
3.What type of relationship is depicted when a graph shows that as the values on the horizontal axis increase, the values on the vertical axis decrease?
4.Which two elements are essential to construct a straight-line graph?
5.How can a nominal value be converted into a real value?

When the price of good A rises and this causes an increase in the demand for good B, how is good B classified?

Explanation

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